Bombardier announce revenue loss and bailout

Aircraft manufacturer Bombardier have reported a loss in revenues in their third quarter results ending September 30.

Revenues totalled $4.1 billion for the quarter, compared to $4.9 billion for the same period last fiscal year. For the third quarter ended September 30, 2015, earnings (loss) before financing expense, financing income and income taxes (EBIT) totalled a loss of $4.6 billion, compared to earnings of $171 million for the same period last fiscal year. However, a spokesperson for the Belfast divison which employs over 5000 people said nothing would change in Northern Ireland as there would be “no impact on our operations here”.

President and Chief Executive Officer, Bombardier Inc. Alain Bellemare said: “After just a few months, we have strengthened the management team, we have conducted in-depth reviews of our business and have a much clearer picture of what we need to do.

“We are taking the right actions and we have solidified our liquidity position, giving us the confidence to execute our long-term strategic plan.”

On a positive note the company also outlined a plan that will see the Quebec government invest $1 billion in its long-delayed CSeries jet program, easing investor fears over the company’s liquidity.

“This partnership comes at a pivotal time, with the C Series on the verge of certification. The market is there, our leadership is in place, we have the best product and with the support of the government, we are ready to make this aircraft a commercial success”

Consistent with its strategy, Bombardier is pursuing the placement of a minority stake in its Transportation business segment. Bombardier Transportation is a global market leader with a local production presence in over 20 countries, the broadest portfolio of products and services and the largest engineering organisation in the industry.